Resource type
Date created
2012
Authors/Contributors
Author: Aragon, Fernando
Abstract
This paper studies the effect of costly taxation on the fiscal response of local governments to intergovernmental transfers. Using a panel dataset of Peruvian municipalities, I find robust evidence that central government's grants have a greater stimulatory effect in municipalities facing higher tax collection costs. The results are consistent with costly taxation partially explaining the flypaper effect.
Document
Copyright statement
Copyright is held by the author(s).
Scholarly level
Peer reviewed?
No
Language
Member of collection
Attachment | Size |
---|---|
dp12-09.pdf | 438.32 KB |